Trulia & Tesla both are on the verge of completing a H&S Top. Lets take a look at each.
First up Trulia (TRLA). The 3-months H&S Top is sitting on gap on Aug 1st. Usually gaps act as support making this short idea tricky to enter. Short float is at 17%.
Meanwhile, Tesla (TSLA) 2-months H&S Top is less complicated with no gaps below. The pattern is completed upon closing below 160, targeting $130.. Short float is huge almost at 25%=1 in every 4 shares is shorted.
- Tesla Says Model S Driver Unhurt in Mexico Crash (bloomberg.com)
- Crisis Communications Case Study: Tesla Motors (business2community.com)
- ELON MUSK: Tesla’s Stock Price Is More Than We Have Any Right To Deserve (TSLA) (businessinsider.com)
Zillow (Z) is one very very lucky stock. Z has 2 friends, one very close & old; an 11-months trendline and the other a new 11-week Gap. The trendline has been a very good friend saving Z from the bears on a couple of occasions. Meanwhile the gap saved Z from the recent shutdown/ceiling conundrum and acted as a trustworthy support. So what has changed? The long time trend line has turned its back on Z the last 2 days despite a raging new highs market. A H&S top slanting downwards is in the making and the neckline may meet the gap (the ONLY friend Z has left).
Chef’s Warehouse (CHEF) completed a mini H&S Top by closing below the neck line at 21.85. What is interesting about the pattern is that its a perfect gap fill from 2012. Just wanted to point this out for the ones that play the gap trade.
McDonalds (MCD) looks very weak here..being down on a day like this, in addition to closing the gap at the island reversal, plus the analogy of the past year.
Looks like a good short candidate with a stop @100.90. Pls share/comment !